CashCall: Court Issues Setback for CashCall Borrowers; Plaintiffs Will Appeal
After ruling in favor of the CashCall borrower Class in an excellent ruling on July 30, 2014, the federal court reversed tack on October 21 and granted CashCall summary judgment on the Class claim challenging CashCall’s $2,600 loans as unconscionable under California law. In 2011, the Court certified the loan unconscionability claims for class action treatment. In its extensive July 30 Order, the Court found that there was sufficient evidence that CashCall’s 96% and 135% $2,600 loans were unconscionable and ordered the case to trial. But on October 21, the Court reconsidered its July 30 Order and ruled that the Class loan claims would require “economic regulation” beyond the power of the courts.
Levy and other Class Co-Counsel emphatically disagree with the October 21 ruling. On November 4, 2104 they filed a motion with the Court to allow an immediate appeal of the ruling to the Ninth Circuit Court of Appeals. The motion is expected to be heard on December 11, 2014. Class Counsel will and an appeal as soon as possible under the court rules.
Meanwhile, the Class claims for CashCall’s violations of the Electronic Funds Transfer Act remain on track for trial beginning May 11, 2015. The Court has already ruled that CashCall violated the federal act by requiring borrowers to agree to electronic payments directly out of their bank accounts. The May 2015 trial will focus on the compensation to be paid to Class members for the violation.